PERAC Memo #42 - 2012: Same Sex Marriage Option Change (Section 58 of Chapter 118 of the Acts of 2012)
Same Sex Marriage Option Change (Section 58 of Chapter 118 of the Acts of 2012)
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PERAC Memo #42/2012 addresses amendments (Section 58, Chapter 118 of the Acts of 2012) to the same-sex marriage Option C election provisions originally established under Chapter 176 of the Acts of 2011. The change eliminates boards' discretion to require lump-sum repayment of overpayments, instead guaranteeing members the right to a repayment plan of up to 5 years, with the possibility of an even longer term subject to board approval. Boards must notify any members currently repaying overpayments under a shorter plan of their right to extend to 5 years or petition for a longer term; all other provisions of the 2011 law and PERAC Memo #40 remain unchanged.
Full Text
PERAC Memo # 42 / 2012
M E M O R A N D U M
TO:
All Retirement Boards
FROM: Joseph E. Connarton, Executive Director
RE: Same Sex Marriage Option Change
(Section 58 of Chapter 118 of the Acts of 2012)
DATE: August 1, 2012
This memo addresses a recent statutory change to the Same Sex Marriage Option Change that was
enacted in 2011. Section 55 of Chapter 176 of the Acts of 2011 permitted a retiree to change his or her
option to Option C in certain, limited circumstances involving same sex marriage.
Section 58 of Chapter 118 of the Acts of 2012 makes certain changes to Section 55 of Chapter 176 of
the Acts of 2011, which was originally communicated to retirement boards in PERAC Memorandum #
40/2011, issued on December 15, 2011. Specifically, Section 58 of Chapter 118 changes the
repayment provisions that were contained in the 2011 law, providing the member with a guaranteed
ability to enter into a long-term repayment plan.
Specifically, Section 58 states:
In paying the retirement allowance under the new election, the board, as defined in
section 1 of chapter 32, shall make appropriate adjustments, or arrange for appropriate
repayments, so as to recover any overpayments resulting from the prior election. A
member may make a lump sum payment or installment payments over a period not
exceeding 5 years, provided, however, that with the approval of the board, a member
may .make installment payments over a period exceeding 5 years.
Therefore, the discretion of the board to require a lump sum payment is no longer available. Be
advised that these new payment provisions are only applicable to members who met the requirements
of Chapter 176 of the Acts of 2011 and properly notified the board of their election to make an option
change by July 1, 2012. Boards should notify any members currently in a repayment program of less
than 5 years that the member has the ability to extend the repayment program out to 5 years if they
desire, and further that the member may petition the board to consider a repayment program of greater
than 5 years.
The balance of the provisions of Section 55 of Chapter 176 of the Acts of 2011 and PERAC
Memorandum #40 remain unaffected.
We trust the foregoing will be of some assistance to you.
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